How to negotiate a house price - 5 negotiating tips for home buyers
It’s Important To Become Familiar With The Process Of Negotiating
If you’re ready to buy a property in London, you may be worried about how to start haggling with the seller to reach the price you’re prepared to pay. Negotiating can be awkward, but it’s a key element of purchasing a property.
If you don’t have any negotiating experience, it’s important to get to grips with how to go about the process. The Lyss Homes team are expert negotiators and will always deal with negotiations on your behalf, but we also have some great advice for you!
So, here are our top five tips to help you secure your dream home at the best price.
Tip 1 – Sell First
For many homeowners in London, the idea of selling their existing property before making an offer on another one is terrifying. Our clients often tell us that they’re actually afraid of the uncertainty and the potential of being made homeless.
However, there’s no need to worry. When you ‘sell’ your home, all you’re actually doing is accepting a buyer’s offer, you aren’t physically moving out yet. Often it’s only when your home is ‘under offer’, that other sellers will take you seriously as a buyer, so it makes sense to get through that stage of the process first.
Tip 2 – Do Some Research
Before you can make an offer on a property in East London, you need to do some serious research centred around demand and market value. A quick look on our website at http://lysshomes.co.uk will help you see similar properties within the area you are interested in so that you can compare them against the property you want to buy.
Look at aspects such as the exact location, number of bathrooms and bedrooms, the possibility of extending, and the approximate internal living space of the property so that you can get a good idea of the appropriate market value of the property.
It’s a little more tricky to ascertain demand, but not impossible. Look at how long the property has been listed on the market – if it’s been for sale for some time, demand will likely be lower, and there’s a good chance you may be able to negotiate.
When you look around the property, there are some things to look out for too – ask about the condition of the boiler, the electrical wiring, the roof, and the double glazing. If works need to be carried out you will be in a better position to negotiate.
Tip 3 – Play Your Advantages
Not every buyer is equally attractive to a seller. If you aren’t in a property chain, don’t require a mortgage, or are a first-time buyer, you’ll potentially have an advantage over other interested parties, so make sure to state your position clearly.
When you find your ideal property, play it cool as much as possible. There’s no harm in the seller knowing that you’re going to be viewing other properties, and don’t reveal your budget straight off. Letting your maximum figure slip too early could end up with you paying a figure closer to the top of your range.
Tip 4 – Don’t Be Afraid To Start Low
Making an offer means you’ll only be able to increase your offer after that point. If you start low, you have more wiggle room. This is where your research comes into play – a property that has been on the market for many months and that has significant issues that may need to be addressed could warrant an initial sensible low offer.
Tip 5 – Accept That Walking Away May Be Necessary
Patience is key when you’re negotiating on a property. Rushing things is always a bad idea, and you need to accept that, sometimes, walking away is necessary. It may be your dream home, but if the seller is unwilling to accept a price you can afford, walking away is your only real option. It’s important to prepare for this eventuality right from the start as it will put you in the strongest position for negotiating.
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